Bankruptcy 101

Florida bankruptcy is the legal status of a person, business or organization that has been unable to repay the debt owed to the creditor. Bankruptcy is not the only legal status a person, business or organization may have and the case must be filed in United States Bankruptcy Court.

Often, a debtor will declare Florida bankruptcy to obtain relief from debt. This can be achieved through a discharge of the debt or through a restructuring of the debt.

The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13. As much as 65% of all U.S. consumer bankruptcy filings are Chapter 7 cases. Corporations and other business forms file under Chapters 7 or 11.

florida bankruptcy

Florida Bankruptcy under Title 11 of the Bankruptcy Code

Chapter 7

Basic liquidation for individuals and businesses; also known as straight bankruptcy; it is the simplest and quickest form of bankruptcy available

Chapter 9

Municipal bankruptcy; a federal mechanism for the resolution of municipal debts

Chapter 11

Rehabilitation or reorganization, used primarily by business debtors, sometimes used by individuals with substantial debts and assets; known as corporate bankruptcy, it is a form of corporate financial reorganization

Chapter 12

Rehabilitation for family farmers and fishermen

Chapter 13

Rehabilitation with a payment plan for individuals with a regular source of income; enables individuals with regular income to develop a plan to repay all or part of their debts; also known as Wage Earner Bankruptcy
Chapter 15

Ancillary and other international cases; provides a mechanism for dealing with bankruptcy debtors and helps foreign debtors to clear debts.

Avoid Bankruptcy Fraud

Florida bankruptcy fraud involves concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, or fee fixing or redistribution agreements. Bankruptcy fraud is a federal crime.

To better protect your rights when filing a Florida bankruptcy, all assets must be disclosed in bankruptcy schedules whether or not the debtor believes the asset has a net value. Ramifications for failing to omit assets can be quite serious. A closed bankruptcy may be reopened by the creditor if the debtor attempts to claim ownership of unclaimed assets. The lender may then seize the asset and liquidate it for the benefit of the lender.

Ensure your assets are properly accounted for. Any person, business or organization seeking Florida bankruptcy should consult an attorney with Florida Foreclosure Law Group to evaluate your options. Once the decision has been reached to declare bankruptcy, the attorney will guide you through the remainder of the bankruptcy process and help to disclose any items that will help to avoid bankruptcy fraud.

How to file Bankruptcy in Florida

There are many steps involved that any person, business or organization should take prior to filing for Florida bankruptcy. Any person, business or organization seeking bankruptcy should consult an attorney to evaluate your options. Once the decision has been reached to declare bankruptcy, the attorney will guide you through the remainder of the Florida bankruptcy process.

For more info on Florida Bankruptcy, give us a call at 877-783-5986